RAILROAD REVITALIZATION ACT WILL ADD NEW CONCEPTS TO RATEMAKING PROCESS

The Railroad Revitalization and Reform Acts designed to function on two levels, providing for revitalizing failing railroads through federal aid and revitalizing all railroads through regulatory reforms calculated to enhance the industry's competitive strength. Throughout the law are dozens of rate-oriented provisions that will force some type of response from railroads, shippers and even other modes of transportation. This will mean that rail and shipper rate specialists must cope with new rate-making terms such as market dominance, going concern value, predatory pricing and the Conte Amendment. While there is a degree of deregulation, the Interstate Commerce Commission is still deeply involved in the required processes.